Chief Executive Officer,
Canada’s 210 Nissan dealers are applauding Steve Milette’s move to repair relations between them and the manufacturer, hailing a decision to step away from the company’s controversial stair-step sales-incentive program.
Dealers complained the program was overly aggressive, forcing them to trade profit for sales through steep discounts to reach the targets. The practice was the brainchild of former global CEO Carlos Ghosn.
“Our intent is to attract and retain the best dealers that are out there in the Canadian industry,” he said in August. “If we need to tweak any programs that we have, then we will.”
Milette, 47, is also pulling Nissan away from fleet sales, “which don’t support brand value.” While the move means some short-term pain — sales fell 8.6 per cent in the first 11 months of 2019 — it would result in increased residual values, strengthen the Nissan brand and boost dealer profitability, he said.